Dogecoin is on the Verge of its First Bearish Weekly Crossover in Three Years

Dogecoin, star of memecoins, is approaching a weekly “Death Cross” for the first time since 2023. This rare signal, synonymous with a bearish trend, raises a question: sell or bet on a comeback? Technical analysis and crypto outlooks.

In Brief

• Dogecoin might validate a Death Cross on its weekly chart, a rare bearish signal since 2023.
• Previous Death Crosses led to stagnation, but the context this time is different.
• Crypto investors must keep their eyes open between the risk of a drop and the possibility of a rebound.

Dogecoin Faces a Weekly Death Cross

Dogecoin (DOGE) is close to forming a weekly Death Cross for the first time since February 2023, a technical crossover where the 50-week moving average (50 WMA) crosses below the 200-week moving average (200 WMA). This signal, often synonymous with a long-term bearish trend, is all the more rare as DOGE has experienced only three of them since 2021, two of which were Golden Crosses or bullish crossovers. In 2023, the last Death Cross trapped Dogecoin’s price between 0.07 and 0.10 dollars, without a sharp crash.

But this time, the situation is different. Indeed, at $0.074 DOGE is already below both moving averages, which could amplify the impact of the signal. This crossover is therefore closely watched by crypto traders because, if confirmed by high volume, it could trigger a wave of sales. However, Dogecoin has often defied predictions. Its history shows that Golden Crosses have always preceded explosive rallies. So, will this Death Cross be different?

DOGE: What If the Death Cross Turned into a Golden Cross?

Some crypto investors are betting on a spectacular rebound for Dogecoin, despite the Death Cross causing concerns. After all, DOGE has already proven itself defying technical logic:

• In 2021, a Golden Cross pushed its price from $0.02 to $0.74 in three months, a 3,600% increase; 
• In 2024, a similar scenario occurred, with a 100% increase after a bullish crossover.

Today, although the signal is bearish, external catalysts could reverse the trend. A tweet from Elon Musk, a major integration, or even a rise in Bitcoin could rekindle enthusiasm. Some analysts even bet on a new all-time high if Dogecoin manages to break the $0.12 resistance. However, caution is advised. The crypto market is volatile and unpredictable, and a Death Cross, even if it had little impact in the past, could this time mark the start of a deeper correction.

Dogecoin stands at a technical crossroads. Between the Death Cross and a potential rebound, crypto investors are hesitant. What is certain is that with DOGE, history is never the same twice. And you, do you bet on the drop or the rebound?